Talis Advisors and Dimensional Fund Advisors (DFA Funds)

DFA’s institutional mutual funds are only available to individual investors through fee-only Registered Investment Advisors. DFA does not make their funds available through full service brokerage firms or through discount brokers. DFA’s philosophy of passive investment and low fund expenses defines this arrangement. The firm seeks to minimize the flow of “hot money” into and out of the funds, which can add significantly to expenses or require the liquidation of positions that generate capital gains distributions. 

DFA does not develop or recommend investor portfolios. Instead, this work is left up to the advisor chosen by the client. Development of highly efficient portfolio models requires a thorough understanding of Modern Portfolio Theory (MPT). The principal goal of MPT is to achieve the greatest return for amount of risk taken (or, conversely, to minimize the risk in a portfolio targeted to achieve a specific return). Doing so requires combining asset classes in the portfolio using DFA’s structured asset class funds to achieve effective diversification. This is accomplished by measuring the correlation between specific asset classes that demonstrate a historically high rate of return and combining the asset classes in such a way that portfolio volatility is minimized. Global diversification of the portfolio protects investors from a downturn in any single asset class, domestic or foreign. Our DFA based portfolios typically contain more than 10,000 securities in 44 countries.

DFA manages $213 Billion as of Decmeber 2011. The firm is primarily owned by employees and directors, and manages assets exclusively for institutional investors and the clients of registered investment advisors. DFA’s board members, directors, and consultants represent a “who’s who” in the world of financial economics, including Nobel laureates Robert Merton and Myron Scholes. Eugene Fama is the central scholar whose groundbreaking work with Kenneth French inspired the founding of the firm. The author of the efficient markets hypothesis that underlies all of Dimensional's products, Professor Fama helped develop the firm's process, continues to supply key research, and helps keep the firm abreast of research in academia. Widely regarded as the "father of modern finance," he has brought an empirical and scientific rigor to the field of investment management, transforming the way finance is viewed and conducted. 

As of late 2010, DFA is ranked as the 12th largest mutual fund family based on total assets, ahead of such familiar names as Janus, American Century, Hartford, Putnam, John Hancock, JPMorgan, and Ameriprise (RiverSource). Although highly respected in the academic and financial communities, most individuals have never heard of DFA.  The firm does no advertising, which helps keep fund expense ratios very low. 

The process of establishing an account with us and developing a portfolio tailored to your individual needs is very straightforward. Our client accounts are custodied at TD Ameritrade Institutional or Schwab Institutional. Clients have 24/7 online access to their accounts and receive account statements directly from the custodian. Both Schwab and TD Ameritrade are a members of the Securities Investor Protection Corporation (SIPC). Clients may choose to have advisory fees deducted from their accounts or to receive a quarterly invoice. All advisory fees are charged in arrears (many other advisors charge in advance). Contact us to discuss our fee schedule or to obtain a copy of our advisory contract.